Hyperliquid officially launched its Aligned Quote Asset v2 (AQAv2) protocol on August 26, establishing a new framework that allocates 90% of yields generated from the platform’s USDC holdings toward HYPE token buybacks and permanent burns.
Under the new protocol, stablecoin reserve revenue is funneled into the Assistance Fund to purchase and remove HYPE tokens from circulation. This system functions alongside Hyperliquid's original buyback pathway, which allocates 99% of trading fee revenues to repurchases and burns. While the original mechanism depends on trading volume fluctuations, AQAv2 revenue correlates directly with stablecoin deposit volumes.
Technical deployment for AQAv2 is handled by Circle, while Coinbase oversees treasury management. Both entities staked HYPE holdings ahead of the operational rollout, with USDC deposits automatically distributing in a 1:9 split between technical and treasury wallets.
Yield accumulation began immediately, following 30-day operating intervals. Distributions are scheduled to move to the Assistance Fund eight days after each period concludes, with the inaugural payout expected on October 3. Projections estimate that AQAv2 could generate between $135 million and $200 million annually in buyback volume, depending on prevailing interest rates and USDC reserve levels estimated between $5 billion and $7 billion. The inaugural buyback cycle is projected to receive approximately $20 million.
Following the launch, HYPE rose over 2% to trade at $83.08, sitting just 0.2% below its record peak of $83.27, while daily trading volume increased by about 7%. Market activity also saw market maker Wintermute reduce its HYPE short position from $211.53 million down to $80.48 million, according to data from Onchain Lens. Meanwhile, aggregate HYPE futures open interest grew 3% over a 24-hour period to reach $3.58 billion.
